Delhi Delhi: India should strengthen its production-linked incentive (PLI) schemes in the wake of rising global trade competition, especially after US President Donald Trump announced reciprocal tariffs on several countries, including India, according to a report by the State Bank of India (SBI).
The report said India has a strong opportunity to benefit from the global shift in trade, especially after the US imposed high tariffs on Chinese goods.
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It recommended that the Indian government expand existing PLI schemes in key sectors such as textiles, engineering goods and gems and jewellery. It suggests expanding the coverage of the scheme to include more products and extending its duration by three more years. This will boost investments in domestic industries and make Indian products more competitive in the global market.
It said, “The Indian government should expand the existing production-linked incentive (PLI) schemes in these sectors to cover a wider range of products and extend their duration to 3 years, which will boost investment and global competitiveness of domestic industries.”
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One of the key sectors that will benefit India is exports to the US. With tariffs on Chinese goods rising, India could increase its market share in sectors such as textiles, apparel and footwear. Additionally, India has manufacturing strengths in iron and steel products, which could also benefit from these trade changes.
